Vista Equity Partners to raise new flagship fund, sources say

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The leading private equity firm Vista Equity Partners has notified investors that it is planning to raise a new flagship fund later this year, according to people with knowledge of the matter.

The firm, led by billionaire Robert F. Smith, has yet to set a goal for the fund, the people said, asking not to be identified because of the matter is private.The formal fundraising efforts could begin towards the end of this year, said one of the people.

A Vista spokesman declined to comment on the firm's website as the fund formation plans in 2009.

The effort will test the support for Vista from investors, including pension funds and endowments, after Smith's admission that he had evaded taxes for years and provided $139 million in back taxes, fines and penalties last year.Brian Sheth left Vista in November.

According to the New York Times, the New Mexico Educational Retirement Board has withdrew plans last year to invest in Vista's credit fund following Bloomberg News reports of the tax investigation.

In 2019, Vista raised $27 billion for its seventh flagship fund, including contributions from Executives.At the time it marked the largest tech-focused private equity company ever launched, but has since been eclipsed by Silver Lake's $17.8 billion fund and Thoma Bravo's $20 billion fund, both announced within the past seven months.

The board of directors of Vista have made bets on companies such as Klarna Bank AB, SmartBear Software, TripleLift and Pluralsight Inc.

Microsoft bought work-management company Citrix Systems Inc. earlier this year for $1.25 billion to Wrike Inc.The company was fully backed by one of Vista's middle-market funds, a net aggregate rate of return of 70%, said a person who had knowledge of the matter.

Late last year, Vista closed $2.7 billion in capital commitments for its credit and private equity funds.

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